The 504 Loan Program provides:
long term, fixed rate, subordinate-lien financing of capital assets, usually at below market rates. It is designed for small businesses that are “for profit” to enhance job creation/retention; usually one job per $65,000 financed.
 
The 504 Loan Program offers:
Key advantages to businesses:
- Low down payment
- Below-market fixed interest rates
- Longer loan terms
Key advantages to financial institution partners:
-First-lien, low LTV loans

Eligibility requirements include:
- Net worth of business cannot exceed $8.5 million
- Average net profit after taxes cannot exceed $3 million for each of the previous two years
- Generally available to manufacturing, warehousing, retail and service type industries
- Projects must be at least 51% owner occupied for purchase transactions - 60% for new construction

Permitted Uses of 504 Loan Proceeds:
- Acquisition of vacant land
- Acquisition of land and building
- Leasehold improvements
- Renovation of, addition to, or construction of a building
- Acquisition of equipment with a useful life of at least 10 years
- Associated soft costs:  title searches and insurance; attorney fees; appraisals; environmental reports; architects; permits; surveys; installation of machinery; points on bridge loans; small amounts of furniture and fixtures, etc.

 Exclusions are:
- refinancing (except to take out bridge financing)
- inventory
- working capital
- accounts receivable

Fees are:
one time charges that cover underwriting and processing that can be financed in the 504 loan.